CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact

News

Home » Small lenders must have access to secondary mortgage market
Policy & Issues

Small lenders must have access to secondary mortgage market

June 3, 2021
FHFA

Small lender access to the secondary mortgage market is vital to ensuring the housing finance market benefits consumers, CUNA Senior Director of Regulatory Advocacy and Counsel Elizabeth LaBerge told a Federal Housing Finance Agency (FHFA) listening session Thursday.

“The secondary market must be open to lenders of all sizes on an equitable basis. CUNA understands that the users of a secondary market will be required to pay for the use of such market through fees, appropriate risk premiums and other means,” she said. “CUNA thanks the FHFA for formally ending mortgage volume discounts in 2019 and it is critical that guarantee fees or other fees/premiums should never have any relationship to lender volume going forward.

“Additionally, CUNA would caution against regimes that require lenders to retain significant amounts of risk beyond that represented by actuarially appropriate guarantee fees, as these risk retention arrangements may have a disproportionately negative impact on small lenders that are less able to manage such risk and could therefore result in less consumer choice,” she added.

LaBerge also called on FHFA to continue to keep small lender access “top of mind” to ensure the housing finance market continues to operate to the benefit of American consumers.

  • Urging FHFA and Fannie Mae/Freddie Mac to increase its focus on affordable housing;
  • Asking FHFA to reconsider its use of area median income in qualifying benchmarks for it affordable housing programs;
  • Calling on FHFA and the Treasury to carefully consider the effect of the 7% cap on financing of non-owner-occupied homes and second homes, as it may increase the cost of financing affordable rental housing;
  • Calling on the FHFA to expand the use of drive-by appraisals to address the health and safety concerns of borrowers and provide flexibility wherever possible; and
  • Asking FHFA to consider a program to ensure the smallest credit unions can safely access the liquidity of the secondary market.

Credit Union Magazine: Summer 2022

Summer 2022

Credit Union Magazine’s Spring 2022 edition highlights inclusive lending, succession planning, fair lending and artificial intelligence, and the use of environmental, social, and governance (ESG) as a competitive differentiator.
Digital Edition •  Subscribe

Trending

  • CFPB issues advisory opinion on debt collection fees

  • CDFI Fund offering $1.73B to help communities recover from pandemic

  • Comment deadline extension needed for CFPB late fee ANPR

Tweets by CUNA_News

Polls

Do you think credit unions should offer cryptocurrency services?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2022 Credit Union National Association | ADA Compliance Notice & Legal
Email Us